US Lawmakers Draft Bill 'Protecting' Cryptocurrencies From Government Interference

Tyler Durden's picture

Several members of the US Congress are drafting legislation that is intended to recognize certain digital currencies and 'protect' them against interference from the federal government. The question is - does the 'protection'

CoinTelegraph reports that the bill, which will provide protection to cryptocurrencies that comply with certain minimum requirements to prevent them from being used by those engaged in illegal business practices like drug traffickers and terrorists, is expected to be filed in September 2017, according to DailyCaller.

Based on a reliable source, at least one Republican senator and two Republican congressmen are working on the draft legislation.

The legislators, however, have requested that should not be identified due to the sensitivity of the issue and the complexity of the proposed solution.

A source close to the effort told TheDC,

“the center piece of the plan is to mainstream digital currency so it can be treated just like the American dollar.

 

First, there is a new entity that is considering issuing a brand new digital currency that is compliant with anti-money laundering laws unlike any other in circulation.”

Although cash has some of the same problems being used to pay for illegal activities, the perception that digital currencies are being used for illegal activities is seen as the primary roadblock to wholesale acceptance by the American public.

The source told TheDC the new model is going to follow federal laws that prevent money laundering. This is a break through and could lead to the use of digital currencies replacing the dollar for many transactions.  The legislation is expected to be introduced in early September.

The source asked the members of Congress involved in drafting the bill not be identified yet, explaining, “this is a very complicated issue and staff are working through some issues that have in the past stopped alternative currencies from being launched.”

They continued that:

...the law needs to be changed to protect digital currencies from federal government harassment to make sure that a complaint currency can be backed by value, the currency cannot be treated like a security or investment, and that transfers are protected against taxation.

 

The bottom line is that Congress needs to remove all the obstacles to a vibrant digital currency that has voluntarily taken the initiative to keep the bad guys from using it.”

What is perhaps most ironic here is that government lawmakers are attempting to codify rules to stop government lawmakers interfering with the free and open exchange of a decentralized currency... by setting rules that potentially interfere with the free exchange of said currency.

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ET's picture

Remember that this is a ploy to divert money from gold, thereby hiding inflation.

This is what they want. You will not see items priced in Bitcoin. Too much volatility to post prices for real goods and services.

Raffie's picture

Very nice and totally expected.

tmosley's picture

The nice part that the peanutz will miss is that this would lock open the door to convert fiat into crypto, which can then be easily traded for any other crypto, including ones that might be made illegal in the future.

TeamDepends's picture

Damn, you crypto haters need to STFU and do some research.  We were ignorant like you, but then we looked into it.  Cryptos were born out of necessity, because faith in gov fiat is about to evaporate.  We, like you, wish that the central bankers were not evil scumbags and their money could be trusted.  But that didn't happen, did it?  And if you think you can use PMs when TSHTF, remind yourself how few of your countrymen have any with which to trade.  Cryptos are not some magic panacea, but they are definitely here to stay.  When Bitcoin hits $100K, and it will, will you still be in denial?

NukeChinaNow's picture

WTSHTF how do suppose to access your crypto when there is neither power nor the ability to eat binary ones, zeros and the alphabet?

Please tell me when the power goes out what your $100,000 bitcoin will do.

I'd REALLY like answers from the Bit intelligencia, tyvm.

e_goldstein's picture

You know, some of us have seen this coming for years.

Just because he owns crypto doesn't mean he isn't prepared to feed himself.

NukeChinaNow's picture

Please tell me when the power goes out what your $100,000 bitcoin will do.

I didn't say he wasn't stocked up. I SIMPLY ASKED WHAT WILL IT DO IF YOU CAN'T GET TO IT?

No one is answering my question. It's a simple one. I'm not trying to argue. I WANT A FUCKING ANSWER TO THAT QUESTION.

That's all. I'd like to know, so shoot me or sue me but SOMEBODY must have thought about THAT.

e_goldstein's picture

1. I don't have $100k of bitcoin.

2. If it gets that bad, things will be so shitty that your investments from the old world are going to be the last thing on your mind. Avoiding that biker gang who heard your chicken and is looking for dinner should probably come first.

 

PrezTrump's picture

You and other dumbasses beleive power goes out and it will be out forever.

In that case who gives a shit.

Try to trade gold and it will be promptly stolen by force.

Think your guns will protect you?

They have guns too.

Case in point: you are a dumbass.

TheReplacement's picture

You morons, yes you PT, just cannot understand that not everything in the world is a binary choice.  If you think you can survive on bitcoin alone and that guns are not going to do any good then you deserve to be eaten by the biker gang before your chickens.  Oh but you are the imbecilic type to not have chickens because biker gangs will come and take them from you.  FFS, what is wrong with you all?

Edit:  Yes, I downvoted you.  If I could do it 1000 times I would.

 

NukeChinaNow's picture

Well you certainly put me in my place, ya dumb fuck.  /s.  Thank you for that most enlightening reply to my question. Why do morons

like you believe your typed dung is of value to anyone but your little twinkle-toed ass is beyond me.

And yeah, my weaponry and ability to implement tactical responses are more than sufficient for all but other Mil/LE Depts. GFY.

 

Golden Phoenix's picture

When you watch The Walking Dead you imagine you're Rick, don't you? Odds are 10,000:1 you'll be a zombie instead so it doesn't fucking matter. 

Dennisen's picture

Allow me to add that in that case, there will be no operational ATMs or banking, nor cash registers at stores and supermarkets, nor heating or air conditioning, nor lights (without batteries). Bitcoin, the internet, and most comforts of modern civilized society will be unavailable to ever-angry and frustrated people bent on getting what they want, however they can. Long before that possibility happens, you'd better have a plan in case it does...cash, portable PMs, your Bitcoin offline on a Ledger Nano S, and the family in tow to another place that isn't in a blackout.

NukeChinaNow's picture

God, this is getting tiresome. I'm NOT ASKING FOR SITREPS AND POSSIBILITIES! I MERELY ASKED what was the default position for those who held 'wealth' in "electronic accessibility only" storage...and what THEIR 'STRATEGERY' WAS/IS ( thanks to GDUB for strategery ).

I do NOT GIVE A FUCK about the chumps that voice comments that think "well IF THAT has happened WE'RE ALL FUCKED"...blah blah blah!

I do not need to hear ANYTHING...ANYTHING!!!!!!... OTHER THAN...WHAT!? do those of us that hold cryptos as a form of 'wealth' expect to do if they find themselves WITHOUT THE ABILITY TO ACCESS IT!? Good fucking GOD how difficult it is to get an honest answer! I did not wish to hear bleating and blather about " that's not all they have...if that's the scenario we're all fucked...the power does not remain off indefinitely...I have food and water...blah blah blah!!!!

ANSWER THE FUCKING QUESTION!

What good is $100,000 of bitcoin if you can't get to it because of no power?

My question is akin to making an access road to your homestead when a flood takes out your normal route, ok?

Does THAT analogy help?! For instance, if the power is out over a large swath of YOUR living area ( NOT THE WHOLE OF THE EARTH...Nimrods ) and you need to get at your crypto, do you have contigency plans with trusted people to get to it by reaching 'em say, by Ham radio or some other means?

I'm not trying to be a provocateur. I'm trying to identify problems and find possible solutions-in case I FIND MYSELF THERE.

I do ever so hope there's something in THIS POST that conveys I REALLY AM looking for answers to my original question and not trying to jab a pointy ( I TOLD YOU SO ) stick into crypto 'wealth' holder's eyes.

 

TYVM

NukeChinaNow's picture

Hey, noodle-neck? A down vote isn't an answer, ya dweeb.

tmosley's picture

Where has the power gone down?

Not many places I have heard of. Places that are and were a LOT worse off than we are ever likely to have it.

TheReplacement's picture

There never has been a carrington event, ever.  Pull ALL of your eggs in one basket.  It's a binary world.  Nothing else will ever have value besides cryptos.  Duh.

BTW, just WTF are you gonna trade your cryptos for if they are the only thing with value?

I am so sick of both sides of this argument.  It is like watching retards trying to jack off a dead tree stump.

zebra77a's picture

The biggest driving force of crypto IS the central banks themselves who meet quietly in Basel Switzerland - and have watered down all Western Gov fiat  hugely!.. As G8 planners they have devalued all western government fiat's into near oblivion while local, municipal, provincial, and federal governments have tag teamed the public with ever increasing taxation - that now never stops increasing..

Because of this ever increasing parasitic feeding upon the public it left them no choice but to move (out!) of fiat into ANYTHING that is immune to manipulation and taxation. 

In otherwords Bitcoin is  extremely valuable because it mathmatically extremely difficult for anyone to dilute even for the near unlimited resources of the central banks..

Crypto is when combined with the blockchain mathmatically difficult to track, tax, and most importantly dilute! 

Consider..

Houses are hard to hide from the government and when they felt like it they just showed up and taxed or took your house.. Consider Vancouver..

Gold was heavily diluted 350:1 by paper certificates..

Bitcoin never has to be useful to the public as a currency to be highly valuable.. Like diamonds they are rarely used as currency but their value IS its immunity to manipulation..

Solid Gold Bubble's picture

Well said.

You've outlined how Bitcoin serves as "digital gold" - more practical as a store of value than a medium of exchange. I think this is why slow transaction speeds and high fees won't matter too much in the future - Bitcoin will be for hording and infrequent high value exchanges - much how governments and institutions currently trade real physical gold. If you're making a $10m business deal or buying a $700k house you don't need the transaction to be fast - you just need it to be secure. 

The role of medium of exchange - $10 grocery store PoS transactions which need to be fast - will be assumed by "digital silver". It remains to be seen which coin(s) that will be. It was looking like Litecoin at one point but since the Bitcoin segwit announcement and subsequent price drop, that is looking less certain. Personally I am loading the boat with Bitcoin, Bitcoin Cash and Monero. 

Nice pop in ETH today - would really like to see it top $400 again soon.

Tubs's picture

The digital version of anything has inherent benefits over the real deal, doesnt mean it is worth anything. 

Comparing bitcoin to digital gold is like comparing a digital house to a real house. You dont have to maintain it, it can be sold online in real time anonymously etc etc . But at the end of the day its utility value is zero cause it is only worth the same as what some late in the game Millenial geek is willing to pay for it.

After all, it is DIGITAL GOLD!!! 

Bitcoin has alot more in common with Baseless Fiat than Gold.

Keep spending dudes and pump up that bubble. Bitcoin is going to $20,000! That is, until Central Banks who designed it decide to pop it once and for all and replace it with their own version.

tmosley's picture

Hahaha, how many items were you seeing priced in gold?

ET's picture

Oil.

The most strategic commodity in the world.

tmosley's picture

Please show me where you are finding such quotes.

I have 1000% faith that you will be able to produce such a feed.

tmosley's picture

Where's the feed?

Just because a single country is bartering oil for gold doesn't mean it is PRICED in it.

Likstane's picture

Tap out, you stubborn bitch

tmosley's picture

Hahahaha what a ridiculous thing to beg me to do.

jeff montanye's picture

no "please."  that would make it a command.

 

PrezTrump's picture

He is talking about the turkish/isis market.  Doesn't everyone trade there?

NukeChinaNow's picture

You sure it ain't water?

ET's picture

Bitcoin has had clever marketing over the years. The use of gold imagery to equate Bitcoin with gold and calling it a coin when it is not are such methods to deceive.

Truthful advertising would call it a blockchain and prone to electronic intercept despite its crypto name.

ET's picture

What a lot of financial commentators are missing here are the currency exchange rates.

Look at how many yuan or euros or dollars it takes to buy a Bitcoin.

The exchange rates for yuan and dollars or euros and dollars in the Bitcoin market are the same in the currency exchange markets.

These cryptos are holding back inflation of consumer goods and services, gold, silver, and other asset classes worldwide, not just in the US.

devo's picture

Anything that eats up the inflation is great in my book. Get these people to pay 20k for a fake coin and I'm good with it.

LawsofPhysics's picture

+1...

stupid is as stupid does...

"Full Faith and Credit"

same as it ever was...

tmosley's picture

That doesn't absorb inflation though. You don't just take dollars and stick them in your computer and the bitcoins pop out. You buy them from someone who then has dollars to spend on something else.

LawsofPhysics's picture

Remind us, where do those dollars (a.k.a. Federal Reserve Promissory Notes) come from again?

tmosley's picture

That is the wrong question.

The right question is "where do the dollars go when you buy a bitcoin"?

They don't go through a shredder, I can tell you that.

LawsofPhysics's picture

A physical dollar is NOT the same thing as a digital dollar!!!!!!!

 

Wow.  YOU, of all people, should know that!!!!!!!!!!!!!!!!!!

 

get some help buddy!

tmosley's picture

You are deflecting like someone in cognitive dissonance.

Neither physical nor digital dollars are destroyed when you buy crypto.

This isn't hard for even an idiot who isn't emotional.

jeff montanye's picture

you are right, downvotes to the contrary.  but speaking of emotions and, possibly, idiocy --

the wild card in all this is the velocity of money.  while mining gold or bit coins takes monumental effort, producing currency some effort, given the infrastructure is in place, and digital currency (including from fractional reserve banking) nearly no effort at all, changing the velocity of money is like changing your mind: doesn't take as long as changing your shoes, in many cases.

it is also about as far from official hands as the money supply is close.

p.s. has zerohedge (or the nsa) thought of marketing the posts and/or comments, to order, after the fact?  (or have you thrown it all away?)  i would pay (something) for mine and, depending on the price, for others here as well.  hey, digital currency takes nearly no effort at all.

and that's money.

devo's picture

He's drank the Kool Aid, is barfing it up, and trying to pour us a glass. Ain't gonna happen. Try some dumb Chinese dude. I hear they are willing to pay 4k for fake coins!

TeamDepends's picture

Both will be worth zero in the near future, so....

devo's picture

Not really. Most of bitcoin is hoarding/speculation without spending. People paying 3k for something worth 0 absorbs inflation.

LawsofPhysics's picture

Yes, and there is plenty where that came from as ALL STIMULUS IS FUNGIBLE!!!!!!

The central banks around the planet have been, and continue to, printing their fucking brains out!!!!!!!!!

devo's picture

It's funny that people who are pro bitcoin (i.e. trying to sell it to a greater fool) say it protects against inflation because you can't print more. Yeah, but you can subdivide what has been "mined" infinitely. Same fucking thing! Doh.

tmosley's picture

You can subdivide gold the same way, peanut.

SAIAN's picture

You need a hell of a kit to subdivide gold into 0.000001 grams or something and flog that off... a person has to be realistic

 

tmosley's picture

But it can be done. Simple debasement can get you there no problem.

But we tend not to be so honest with our metal debasements.

Another reason that crypto is better. No test kit needed.